BILL NUMBER: SB 1779	CHAPTERED  09/01/00

	CHAPTER   285
	FILED WITH SECRETARY OF STATE   SEPTEMBER 1, 2000
	APPROVED BY GOVERNOR   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 22, 2000
	PASSED THE ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   JUNE 28, 2000
	AMENDED IN ASSEMBLY   JUNE 15, 2000
	AMENDED IN SENATE   MAY 3, 2000

INTRODUCED BY   Senator Johnston

                        FEBRUARY 23, 2000

   An act to amend Sections 89304, 89701, 89702, 89704, 90000, 90001,
and 90011 of, to add Section 89703 to, and to repeal Section 89702.1
of, the Education Code, relating to the California State University,
and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1779, Johnston.  California State University.
   (1) Existing law establishes the California State University and
its various campuses under the administration of the Trustees of the
California State University.  The existing State University Revenue
Bond Act of 1947 authorizes the trustees, among other things, to
utilize the proceeds of various fees, rents, or other charges,
including fees relating to the construction of student body centers,
parking and other transportation facilities, and student health
facilities, and fees charged for extension programs and other
self-supporting instructional programs, as a revenue source to repay
bonds issued by the trustees to fund the construction of these
facilities.  The proceeds of these fees, rents, and other charges are
continuously appropriated to the trustees for their respective
purposes.
   This bill would authorize the trustees to pledge revenues from
each of these prescribed fees, rents, or other charges to fund the
construction of all facilities authorized to be constructed under the
bond act.  To the extent that this bill would authorize the trustees
to expend the proceeds of these fees, rents, and other charges for
new purposes, the bill would constitute an appropriation.  The bill
would also authorize the trustees to prescribe student housing rental
rates and fees, and to pledge revenues from these fees and charges
for the purposes of the bond act.
   (2) Existing law authorizes the trustees to prescribe a fee to
provide for the acquisition, construction, and improvement of student
health facilities, and requires that all capital outlay projects in
excess of $65,000 to be constructed with revenue from this fee be
approved by the Legislature.
   This bill would delete the requirement that these capital outlay
projects be approved by the Legislature.
   (3) Existing law requires that any revenue from fees for health
services and health facilities maintenance collected by the Trustees
of the California State University in the 1993-94 and 1994-95 fiscal
years be deposited in the State University Facilities Revenue Fund
and appropriated for operation of student health centers.
   This bill would delete this provision.
   (4) The bill would make nonsubstantive technical and conforming
changes in various provisions of law relating to the fiscal affairs
of the California State University.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 89304 of the Education Code is amended to read:

   89304.  (a) Upon the favorable vote of two-thirds of the students
voting in an election held for the purpose at a state university, in
the manner the trustees shall prescribe, and open to all regular
students enrolled in the state university, the trustees are
authorized to establish, in addition to any other student fee the
trustees are authorized to establish, a building and operating fee,
not to exceed forty dollars ($40) per student per academic year,
which shall be required of all students attending the state
university.  All unexpended funds and money collected by any state
university under this section shall be available for financing,
operating, and constructing a student body center.  All unexpended
funds collected by any state university under this section shall be
deposited or invested in trust by the chief fiscal officer of that
state university in any one or more of the following ways:
   (1) Deposits in trust accounts of the centralized treasury system
pursuant to Sections 16305 to 16305.7, inclusive, of the Government
Code or in the California State University Trust Fund or in a bank or
banks whose accounts are insured by the Federal Deposit Insurance
Corporation.
   (2) Investment certificates or withdrawable shares in
state-chartered savings and loan associations and savings accounts of
federal savings and loan associations, if the associations are doing
business in this state and have their accounts insured by the
Federal Savings and Loan Insurance Corporation.
   (3) Purchase of any of the securities authorized for investment by
Section 16430 of the Government Code or investment by the Treasurer
in those securities.
   (4) Participation in funds that are exempt from federal income tax
pursuant to Section 501(c)(3) of Title 26 of the United States Code
and that are open exclusively to nonprofit colleges, universities,
and independent schools.
   (5) Investment certificates or withdrawable shares in federal or
state credit unions, if the credit unions are doing business in this
state and have their accounts insured by the National Credit Union
Administration and if any money so invested or deposited is invested
or deposited in certificates, shares, or accounts fully covered by
that insurance.
   (b) All revenues received by the trustees under this section may
be pledged for the acquisition, construction, and improvement of
student body center projects pursuant to the State University Revenue
Bond Act of 1947 (Article 2 (commencing with Section 90010) of
Chapter 8), and may also be pledged to supplement other revenue
funded projects relating to debt obligations issued by the trustees
pursuant to the State University Revenue Bond Act of 1947.  Nothing
in this section shall be construed as altering or permitting a change
in the pledge of student body center fee revenues established in
connection with debt obligations issued prior to the enactment of
this section and pursuant to the State University Revenue Bond Act of
1947.
   (c) The chief fiscal officer of each state university shall be
custodian funds collected by a state university under this section,
and shall provide the necessary accounting records and controls
thereof.
   The state university shall be reimbursed from these funds in an
amount to cover the cost of the custodial and accounting services
provided by the state university in connection with these funds.
   (d) The funds collected by a state university under this section
may be expended by the custodian only upon the submission of an
appropriate claim schedule by an elected representative of the
student body or his or her appointee.
  SEC. 2.  Section 89701 of the Education Code is amended to read:
   89701.  (a) The trustees are authorized to acquire, pursuant to
the Property Acquisition Law (Part 11 (commencing with Section 15850)
of Division 3 of Title 2 of the Government Code) or by lease or
other means, real property and to construct, operate, and maintain
motor vehicle parking facilities and other transportation facilities
thereon for state university officers, employees, students, or other
persons.  The trustees may prescribe the terms and conditions of the
parking, and of parking on facilities existing on the effective date
of this section, including the payment of parking fees in the amounts
and under the circumstances determined by the trustees.  Varying
rates of parking fees may be established for different localities or
for different parking facilities and for the purposes authorized by
subdivision (b).  In determining rates of parking fees, the trustees
may consider the rates charged in the same locality by other public
agencies and by private employers for employee parking, the rates
charged to students by other universities and colleges.
   (b) (1) Except as otherwise provided in this section, revenues
received by the trustees from any of the motor vehicle parking
facilities, as well as from all parking facilities existing on the
effective date of this section, may be transmitted to the Treasurer
and, if transmitted, shall be deposited by that officer in the State
Treasury to the credit of the State University Parking Revenue Fund,
which is hereby created.
   (2) All revenues received by the trustees under this section may
be pledged for the acquisition, construction, and improvement of
parking and other transportation facilities, and may also be pledged
to supplement other revenue funded projects relating to debt
obligations issued by the trustees pursuant to the State University
Revenue Bond Act of 1947.  Nothing in this section shall be construed
as altering or permitting a change in the pledge of parking fee
revenues established in connection with debt obligations issued prior
to the enactment of this section and pursuant to the State
University Revenue Bond Act of 1947.
   (3) All revenues received by the trustees from parking facilities,
to the extent not pledged in connection with bonds or notes issued
pursuant to the State University Revenue Bond Act of 1947, are hereby
appropriated, without regard to fiscal years, to the trustees for
the acquisition, construction, operation, and maintenance of motor
vehicle parking facilities on real property acquired hereunder or on
real property otherwise under the jurisdiction of the trustees, and
for the study, development, enhancement, operation, and maintenance
of alternate methods of transportation for officers, students, and
employees of the California State University.
   (4) The trustees shall allocate the funds for the construction of
parking facilities for each of the California State University
campuses only after programs incorporating alternate methods of
transportation have been thoroughly investigated and considered, as
determined by the alternative transportation committees of each
campus and the trustees, in consultation with students and local
government officials.
   (5) Moneys in the State University Parking Revenue Fund may be
invested by the Treasurer, upon approval of the trustees, in those
eligible securities listed in Section 16430 of the Government Code.
All interest or other earnings received pursuant to the investments
shall be deposited to the credit of the State University Parking
Revenue Fund.
   (c) The Legislature, by this section, does not intend to authorize
the institution of a private parking program unrelated to state
purposes in competition with private industry.
   (d) If any provision of this section is in conflict with any
provision of a memorandum of understanding reached pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1 of
the Government Code, the memorandum of understanding shall be
controlling without further legislative action, except that if one or
more provisions of a memorandum of understanding require the
expenditure of funds, the provisions shall not become effective
unless approved by the Legislature in the annual Budget Act.
  SEC. 3.  Section 89702 of the Education Code is amended to read:
   89702.  (a) The Trustees of the California State University may
acquire, pursuant to the Property Acquisition Law (Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code) or by lease or other means, real property and may
construct and improve student health centers entirely or in part by
the use of funds acquired pursuant to this section.
   (b) The trustees may prescribe under Section 89700 a fee to
provide for the acquisition, construction, and improvement of
student health center facilities, in the amounts and under the
circumstances as may be determined by the trustees.
   (c) (1) Except as otherwise provided in this section, revenues
received by the trustees from the student health center facilities
fee may be transmitted to the Treasurer and, if transmitted, shall be
deposited by that officer in the State Treasury to the credit of the
State University Facilities Revenue Fund, which is hereby created.
   (2) All revenues received by the trustees under this section may
be pledged for the acquisition, construction, and improvement of
student health facilities projects pursuant to the State University
Revenue Bond Act of 1947 (Article 2 (commencing with Section 90010)
of Chapter 8), and may also be pledged to supplement other revenue
funded projects relating to debt obligations issued by the trustees
pursuant to the State University Revenue Bond Act of 1947.  Nothing
in this section shall be construed as altering or permitting a change
in the pledge of student health facility fee revenues established in
connection with debt obligations issued prior to the enactment of
this section and pursuant to the State University Revenue Bond Act of
1947.
   (3) All revenues received by the trustees from the facilities fee,
to the extent not pledged in connection with bonds or notes issued
pursuant to the State University Revenue Bond Act of 1947, are hereby
appropriated, without regard to fiscal years, to the trustees for
the acquisition, construction, and improvement of student health
centers on real property acquired pursuant to this section or on real
property otherwise under the jurisdiction of the trustees.
   (4) Moneys in the State University Facilities Revenue Fund may be
invested by the Treasurer, upon approval of the trustees, in those
eligible securities listed in Section 16430 of the Government Code.
All interest or other earnings received pursuant to the investments
shall be deposited to the credit of the State University Facilities
Revenue Fund.
  SEC. 4.  Section 89702.1 of the Education Code is repealed.
  SEC. 5.  Section 89703 is added to the Education Code, to read:
   89703.  (a) The trustees may prescribe student housing rental
rates and fees to provide revenues for student housing programs in
the amounts and under the circumstances that are determined by the
trustees.
   (b)  (1) The trustees may pledge all or any part of student
housing revenues in connection with bonds or notes issued pursuant to
State University Revenue Bond Act of 1947 (Article 2 (commencing
with Section 90010) of Chapter 8), in which case the revenues shall
be deposited, transmitted, and used in the manner provided by that
act.
   (2) All revenues received by the trustees from housing rental
rates and fees under this section may be pledged for the acquisition,
construction, and improvement of student housing projects, and may
also be pledged to supplement other revenue funded projects relating
to debt obligations issued by the trustees pursuant to the State
University Revenue Bond Act of 1947.  Nothing in this section shall
be construed as altering or permitting a change in the pledge of
housing rental revenues established in connection with debt
obligations issued prior to the enactment of this section and
pursuant to the State University Revenue Bond Act of 1947.
  SEC. 6.  Section 89704 of the Education Code is amended to read:
   89704.  (a) Notwithstanding any other provision of law, revenues
received by the Trustees of the California State University from
extension programs, special session, and other self-supporting
instructional programs, including but not limited to, fees and
charges required by the trustees, may be transmitted to the Treasurer
and, if transmitted, shall be deposited by that officer in the State
Treasury to the credit of the State University Continuing Education
Revenue Fund, which is hereby created, and which is hereby designated
as successor to the State College Extension Program Revenue Fund.
   (b) All revenues are hereby appropriated, without regard to fiscal
years, to the trustees for the support and development of
self-supporting instructional programs of the California State
University.  However, proposed expenditures or obligations to be
incurred during any fiscal year from the State University Continuing
Education Revenue Fund, other than expenditures or obligations
authorized by subdivision (d), shall be contained in the budget
submitted for that fiscal year by the Governor pursuant to Section 12
of Article IV of the Constitution, and shall be subject to Article 2
(commencing with Section 13320) of Chapter 3 of Part 3 of Division 3
of Title 2 of the Government Code.
   (c) Moneys in the State University Continuing Education Revenue
Fund may be invested by the Treasurer, upon approval of the trustees,
in those eligible securities listed in Section 16430 of the
Government Code.  All interest or other earnings received pursuant to
the investments shall be deposited to the credit of the State
University Continuing Education Revenue Fund.
   (d) All revenues received by the trustees under this section may
be pledged for the acquisition, construction, and improvement of
facilities for extension programs, special session, and other
self-supporting instructional programs pursuant to the State
University Revenue Bond Act of 1947 (Article 2 (commencing with
Section 90010) of Chapter 8), and may also be pledged to supplement
other revenue funded projects relating to debt obligations issued by
the trustees pursuant to the State University Revenue Bond Act of
1947.
  SEC. 7.  Section 90000 of the Education Code is amended to read:
   90000.  Student housing facilities may be established and
maintained at any state university for the accommodation of students
of the university.
  SEC. 8.  Section 90001 of the Education Code is amended to read:
   90001.  The trustees may require unmarried minor students of the
state university, not living with a parent or guardian, to reside in
private homes or other dwellings approved by the university, or to
occupy student housing facilities provided at the university by the
state.
  SEC. 9.  Section 90011 of the Education Code is amended to read:
   90011.  (a) The following terms wherever used or referred to in
this article, or in any indenture entered into pursuant hereto, shall
have the following meanings, respectively, unless a different
meaning appears from the context:
   (1) "Board" means the Trustees of the California State University.

   (2) "Bonds" or "revenue bonds" means the written evidence of any
obligation, other than revenue bond anticipation notes, issued by the
board, payment of which is secured by a pledge of revenues or any
part of revenues, as provided in this article, in order to obtain
funds with which to carry out the purposes of this article,
irrespective of the form of the obligations.
   (3) The "holder of bonds" or "bondholder" or any similar term
means any person who shall be the bearer of any outstanding revenue
bond or bond registered to bearer or not registered or the registered
owner of any outstanding revenue bond or bond that shall at the time
be registered other than to the bearer.
   (4) "Indenture" means an agreement entered into by the board
pursuant to which revenue bonds are issued, regardless of whether the
agreement is expressed in the form of a resolution of the board or
by other instrument.
   (5) "Notes" and "revenue bond anticipation notes" mean the written
evidence of any obligation issued by the board, pursuant to Section
90013, in anticipation of the sale of revenue bonds, for the purpose
of obtaining funds to carry out the purposes of this article.
   (6) "Person" includes any individual, firm, corporation,
association, copartnership, trust, business trust or receiver or
trustee or conservator for any thereof, but does not include this
state or any public corporation, political subdivision, city, county,
district, or any agency thereof or of this state.
   (7) "Project" means any one or more dormitories or other housing
facilities, boarding facilities, student union or activity
facilities, vehicle parking facilities, alternative transportation
programs, or any other auxiliary or supplementary facilities for
individual or group accommodation, owned or operated or authorized to
be acquired, constructed, furnished, equipped, and operated by the
board for use by students, faculty members, or other employees of any
one or more campuses of the California State University, or a
combination of those facilities, which may include facilities already
completed and facilities authorized for future completion, or any
other facilities designated by the board as a project in providing
for the issuance of revenue bonds or notes.
   (8)  "Revenues" mean and include any and all fees, rates, rentals,
and other charges received or receivable in connection with, and any
and all other incomes and receipts of whatever kind and character
derived by, the board from the operation of, or arising from, a
project, including any revenue that may have been, or may be,
impounded or deposited in any fund in the State Treasury created by
this article or in any other fund or account pursuant to law for the
security of any notes or bonds issued hereunder, or for the purpose
of providing for the payment thereof, or the interest thereon.
   (9) "State university" and "campus of the California State
University" means any of the institutions included within the
California State University, as listed in Section 89001.
   (b) As used in this article:
   (1) The present tense includes the past and future tenses, and the
future tense includes the present tense.
   (2) The masculine gender includes the feminine and neuter.
   (3) The singular number includes the plural, and the plural
includes the singular.
   (4) "Shall" is mandatory, and "may" is permissive.
  SEC. 10.  It is the intent of the Legislature that, in enacting
this act, the financial plan for each individual project funded under
the authority provided by the State University Revenue Bond Act of
1947 (Article 2 (commencing with Section 90010) of Chapter 8 of Part
55 of the Education Code) illustrates that the project will generate
revenue sufficient to pay the debt service costs associated with the
project.
